The future of the BBC Monitoring centre in Caversham Park is more secure following the Government’s spending review, according to the corporation’s director general Mark Thompson.

A new licence fee settlement makes the broadcaster responsible for funding the service which was previously paid for by the Foreign Office.

The new arrangement announced last week sees the licence fee staying at its current level of £145.50 until 2016/17 and the BBC taking on the £340 million combined budget of BBC Monitoring and World Service and Welsh channel S4C.

However, the corporation was saved having to foot the £556 million bill for providing free licences for pensioners. The overall effect will be a 16 per cent reduction in the BBC’s budget.

Reports back in July said staff at the monitoring centre had been told the situation was “grim” and the organisation was at “tipping point”.

But writing on the Guardian website on Monday, BBC chief Mr Thompson said the new arrangements were a good thing.

He said: “The BBC will never again find any of its services in scope for general spending reviews. From now on, the funding of World Service and Monitoring will be agreed in separate licence fee negotiations which will give them longer settlements and greater security than they have enjoyed before.

“Just as now, the Foreign Secretary will have to agree BBC proposals to open or close services. But the BBC will have complete editorial and operational independence over these services and, for the first time ever, international audiences will know that the services are funded not by the UK Government, but directly by the British public.

“That’s likely to increase further their already high reputation for independence and trustworthiness.”